The Biden administration plans to introduce the “global artificial intelligence diffusion rule” before the outgoing United States president is set to step down on January 20, 2025.

The rule is aimed at closing loopholes that allow China to acquire advanced AI chips via third-party nations.

Originally expected by December 2024, the rule’s rollout was delayed due to budgetary reviews.

The policy aligns with Section 301 trade investigations into China’s semiconductor production and follows the blacklisting of 140 Chinese firms.

Since 2021, export controls have been implemented to limit China’s access to advanced chips and technologies for military capabilities.